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Quality Loss Adjustment Improvement for Farmers Act
9/4/2024, 8:05 AM
Summary of Bill HR 8436
Under the proposed legislation, farmers who have suffered quality losses in their crops would be eligible to receive financial assistance to help offset the costs of these losses. The bill would also provide funding for research and development of new technologies and practices to help farmers prevent and mitigate quality losses in the future.
Additionally, the bill includes provisions to streamline the application process for farmers seeking assistance and to ensure that funds are distributed in a timely and efficient manner. The goal of the Quality Loss Adjustment Improvement for Farmers Act is to provide much-needed support to farmers who have been impacted by quality losses in their crops, helping them to recover and continue their operations. Overall, the bill aims to improve the current Quality Loss Adjustment program and provide greater assistance to farmers facing quality losses in their crops. It seeks to address the challenges faced by farmers in the wake of natural disasters and other unforeseen events, and to help them recover and thrive in the face of adversity.
Congressional Summary of HR 8436
Quality Loss Adjustment Improvement for Farmers Act
This bill directs the Federal Crop Insurance Corporation (FCIC) to review and revise quality loss adjustment coverage and provides for the establishment of a regional discount factor for soybeans, as needed.
The FCIC is a government corporation that finances and administers the federal crop insurance program (FCIP) operations. Under the FCIP, farmers may purchase insurance coverage against financial losses caused by certain adverse growing and market conditions, including for quality losses. The federal government subsidizes the premiums that farmers pay for these insurance policies.
The bill directs the FCIC to contract with a qualified entity to conduct a review at least once every five years of the quality loss adjustment procedures. Based on each review, the FCIC must make adjustments to the procedures. Each review must include engagement from regionally diverse industry stakeholders for each agricultural commodity for which a quality loss adjustment is offered.
The bill also directs the FCIC, in certain circumstances, to establish a state or regional discount factor for soybeans to reflect the average quality discounts applied to the local or regional market prices of the soybean crop. The FCIC must take this action in the event of (1) specific emergency or disaster declarations for a state or region, or (2) the occurrence of a salvage market for soybeans in a state or region.
